Is there anything wrong with 288 Gracemonts at some 2.5Ghz ? Not really, it is amazing amount of compute for this same niche that Z4C, Ampere are targeting. In fact 144C with the right price was already enough. AMD will respond with 192C Z4C or Z5C and competition will heat up -> whomever looses, the customers win.
Sounds like perfectly fine product for me, 5-10% more IPC from improved design is also perfectly fine and won't change much. If some resident vendor warriors want to claim that people will choose 128C Ampere or Z4C due to per core IPC ( while at same time ignoring much stronger offering of 96C Z4X3D ) -> all power to them.
In 2025 Intel plans to release another "sea of atoms" product on more advanced process, so those who will be unhappy with 1st gen TCO, might become more happy with 2nd gen.
Overall i like what Intel did with Atom here: having 2 or 4 cores pool their L2 is the correct move in this segment and enables additional areal density, something competitors can't match.
And i would not be surprised if they did the same with P-Cores, imagine having 6+MB of L2 to play with at the cost of no additional area?